Research is an integral part of running an organization, especially as you endeavor to understand your target users.
Approaching customers where they are and in a way that resonates with their situations doesn’t happen by mere instincts or luck; it takes the right strategies, an area that research addresses. That brings us to market segmentation, an approach of dividing target users into smaller and approachable groups.
The subsets are designed following considerations such as common interests, needs, demographics, and priorities, among other ways, that organizations can better understand their target audience. Here are some of the common market segmentation methods.
This is the most popular and easiest market segmentation method. It applies demographic elements such as race, gender, age, education level, occupation, family status, gender, and location, to mention a few. Demographic information is statistical and reliable, making it easier for organizations to uncover valuable insights to inform their strategies. How much the target audience base can afford and is willing to spend, the goods/services they need the most, and how they use those products can easily be understood through the method, as it is based on demographic factors.
The method considers decision-making patterns. For instance, you can explore purchase and spending habits, target users’ status, and brand interactions. This gives you a sense of lifestyle that the target customers. For instance, younger users may prefer tech-based services, while older market segments lean towards conventional approaches. This lets you tailor a more-focused approach that relates to such lifestyle choices.
Geographic market segmentation methods can be termed as a demographic subset. The approach segments target users based on geographic boundaries. Country, zip code, region, city, certain radius; people in such settings depict similarities characterized by their situation. Urban and rural targets have distinct needs and priorities. Based on other considerations such as the climate, an organization can focus on certain elements as they target various geographical regions.
The method focuses on personality traits, lifestyle, interests, opinions, conscious and subconscious beliefs, attitude, and priorities, to mention a few. The method’s primary challenge is that it is not data-focused, requiring extensive research to uncover such considerations to segment the users.
The B2B firms commonly undertake firmographic segmentation; it looks at organizations, not individuals. For instance, the research considers the number of employees in a company, its size, industry, and culture, among other features. From government entities, independent contractors, agencies, and small retail establishments, among other organizations, firmographic segmentation helps you to understand the best way to approach them based on their pain points.
Market segmentation methods let you define and understand your target user base. This makes marketing a lot more productive, as you can utilize laser-focused marketing strategies. From identifying the right market for your product/services and tailoring your message and ads in a way that captures the users’ attention, market segmentation offers a lot as you endeavor to efficiently and effectively navigate the field. While you could favor one method or two, combining multiple approaches, if not all, is advisable as it allows you to capture a complete perspective on your target users.